ATLAS SHRUGS: Hostess Shutters Operations; Closes Denver Plant

The Hostess company today announced that it would stop operations – meaning it will close plants, lay off its 18,500 employees, and sell off its brand. Among the plants it plans to close is one in Adams County, which could close as early as Tuesday, according to an article in the Fort Collins Coloradoan.

The company cited a recent strike as the reason it would have to cease operations. Thousands of union members went on strike last week after rejecting in September a contract offer that cut wages and benefits. While Hostess agreed upon a contract with the International Brotherhood of Teamsters, the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union was still in negotiations with Hostess.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike. Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

The company had asked that striking employees return to work last night, but, apparently, not enough returned to enable the company to return to production. This is just another example of how union bosses with fat paychecks don’t represent the interests of their members. We’d bet the reduced wages for employees that the unions haggled over now look appealing compared to no wages the employees face.

Union logic: I will see your offer of less money and reject it for no money. #Hostess

Sign Up For Our Newsletter

Follow Colorado Peak Politics

Featured Articles

We know December can be a crazy month, but it looks like former Senate President Morgan Carroll may just be in hiding. Our sources tell us that she’s cancelled three or four of her recent townhalls. We see at least two on her website (see pic). We would think that after the shellacking her party ... ∞

In an interview with Colorado Public Radio, Democratic Governor John Hickenlooper bemoaned the idea that the State of Colorado would have to refund tax dollars to taxpayers as part of the Colorado constitution. From the article: “Hickenlooper says [giving funds back to taxpayers] will mean the state may have to cut some essential services. As ... ∞

What should be the first clue that Sen. Michael Bennet isn’t really one of us? Is it his elitist background? His East Coast childhood? His establishment brother? Or, the fact that Bennet doesn’t even really live in Colorado anymore? Well if you’re The Aurora Sentinel’s local gossiper, you can’t help but call Bennet out on the ... ∞

To say that Oil and Gas Task Force Co-Chair Gwen Lachelt is driving the agenda of the oil and gas task force meetings is an understatement. From our exclusive report showing Lachelt’s frustration with the outpouring of support for the oil and gas industry at the first meeting to rumors of her hand-picking public commentary, it ... ∞

UPDATE: Rep. Dan Nordberg, the author of last year’s audit bill, had this to say in a statement: “With only a limited performance audit, the state auditor found Connect for Health Colorado committed numerous federal law violations, and nearly 40 percent of sampled contracts had problems totaling more than $32 million dollars. “Sadly, I am not ... ∞